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Thursday, February 2, 2023


What to Know Before Purchasing a Two-Wheeler Insurance Policy?

The Indian roads are most suitable for two-wheelers and probably this is the reason they are the most popular transportation modes in India. People prefer having a two-wheeler because it is easier for them to breeze through the congested roads and traffic. Despite their popularity, two-wheelers are also exposed to accidental injuries and death.

At the time of purchase of a two-wheeler, we all consider many factors like make and model of our bike, its price, mileage, etc. However, there is something more than simply purchasing a bike and that is its insurance. As much as it is necessary to purchase a suitable two-wheeler, it is equally necessary to purchase the most suitable and right insurance for your bike/two-wheeler.

What is the requirement of buying two-wheeler insurance?

According to the Motor Vehicle Act, 1988, it is mandatory to purchase bike insurance before riding it on the roads. However, it is not only the law that makes it necessary to purchase a bike insurance policy but the safety against any damage or loss makes it a must-have. While a third-party two-wheeler insurance policy safeguards you against any loss or damage occurs to a third-party, the comprehensive insurance cover secures your vehicle from loss or damage. In addition to this, a comprehensive policy also provides third-party coverage. However, as per the Motor Vehicle law, only third-party bike insurance is mandatory. But to safeguard your bike and provide it an extensive coverage like loss or damage to your vehicle, people go for a comprehensive plan.

Despite the coverage, it is entirely your decision to go for a plan that best suits you and provides the required coverage. Therefore, it is suggested to understand what you should know before finalizing a plan. After selecting a plan as per the knowledge gained you can compare it with different plans on the Policybazaar two-wheeler insurance website.

Factors to Know Before Selecting a Two-Wheeler Insurance Policy:

  • Understand Your Coverage Requirement: Before you start looking for a two-wheeler insurance policy, it is recommended to know your demand from an insurance policy and your budget. Two-wheeler insurance is of two types depending on the coverage. One is third-party insurance and the second is comprehensive insurance. Depending on the use of your two-wheeler and its age, your liabilities, and expenditure, you can opt for a policy that offers required coverage.
  • Know the Insurance Declared Value (IDV) of Your Two-Wheeler: In easy terms, IDV is the present market value of a motor vehicle. In this way, IDV is the maximum sum insured that has been fixed while purchasing an insurance plan. This amount is paid in case of theft or total loss of a two-wheeler. Since with time, the value of your vehicle will decrease due to depreciation, thus IDV will decrease and resultantly the premium will decrease. In this way, IDV is the determining factor of the premium of your two-wheeler insurance policy.
  • The Cubic Capacity Decides the Premium of Your Two-Wheeler: You should know the cubic capacity of your two-wheeler as it decides its premium. If the cubic capacity of your two-wheeler is high, then its premium will be at the higher side.
  • Riders or Add-Ons: To extend the coverage of your bike, you can opt for riders or add-ons. The riders or add-ons are added in your existing policy, but you have to pay an extra amount for them, which resultantly increases the premium of your insurance plan. Some of the common riders include personal accident cover, roadside assistance, etc.
  • NCB or No Claim Bonus: For each claim-free policy year, you get No Claim Bonus (NCB), which is offered in the form of a discount on the policy’s premium. You can accumulate a maximum of 50% NCB.
  • Select a Reputed Insurance Provider: It is recommended to opt for a reputed insurance company. To check the reputation of a company, you should check its claim settlement ratio. The claim settlement ratio is the ratio of total claims received by the company versus claims settled. So, if a company has a good claim settlement ratio, it means it is valuing its customer and hence has a good reputation.
  • Easy and Quick Claim Process: The claim process should also be simple and fast. This means the ease of the claim process and fast response by the company should be there.
  • Compare Two-Wheeler Insurance Plans Online: Another point to consider here is the comparison of various two-wheeler insurance plans online. By using platforms like policybazaar two-wheeler insurance you can compare different two-wheeler policies based on inclusions, cost, exclusions, etc.
  • Online Reviews: Another thing that you should consider before purchasing a two-wheeler insurance plan is its online review. The reviews from verified customers let you make an informed decision. Most of the time, in reviews the customers share their experience with the company during the purchasing or claim process. So, reading these reviews can give you a fair idea about the insurance provider.

Common Mistakes When Purchasing Two-Wheeler Insurance:

Apart from the things to remember while purchasing a two-wheeler insurance plan, you should also know the common mistakes that you can do:

  • Not transferring the insurance papers when purchasing a two-wheeler insurance policy.
  • Do not forget to keep your No Claim Bonus (NCB). The NCB is the reward for your careful driving and not using your insurance policy, so it belongs to you, not to your bike. Therefore, it is suggested to retain it even if you sell your old bike. This is because you can transfer it to your new bike.
  • Select the correct name of the insured which should be the same as on RC and on the previous insurance plan.
  • Do not forget or omit to mention correct personal details while purchasing a two-wheeler insurance plan as it can be considered fraud.
  • Mention your nominee. This is to ensure the proper and right transfer of benefits when an unwanted situation like the death of the policyholder occurs.

Wrapping It Up!

Having a suitable two-wheeler insurance plan is one of the steps to take the utmost care of your bike and the above points can help you to cross that step with flying colors. Even though you can purchase an insurance plan physically, but buying it online is recommended. This is because online purchase removes the middlemen and the policy comes to you straight. The removal of middlemen reduces the cost of the plan as well as makes the entire purchase process smooth and fast. You can also renew your policy online and at that time you can review the requirements and understand whether the current coverage is satisfying your requirements or not.

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Shivam Chopra
Shivam Chopra
A news/editorial staff member at The Eastern Herald. Studied Mass Communication. Writing and publishing entertainment, world politics, current affairs, international relations, policy, economy, business, and social news from around the world.

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